Red Canyon T-Shirt Company produces a chain of t-shirt shops in the southwestern

Question

Red Canyon T-Shirt Company produces a chain of t-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year along with the following information

enEeything on onnect Qutz Instructions I help Question 4 (of 5) Save & Exit Submit Time remaining. 0:5311 Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: Quarter 1 Quarter 2 Quarter 3 Quarter 4 70,000 Budgeted Unit Sales 45,000 70,000 35,000 . Each T-shirt is expected to sell for $20 The purchasing manager buys the T-shirts for $8 each . The company needs to have enough T-shirts on hand at the end of each quarter to fill 30 percent of the next quarter's sales demand . Selling and administrative expenses are budgeted at $90,000 per quarter plus 18 percent of total sales revenue. Required

Explanation / Answer

For budgeted sales revenue, multiply the given sales in units with selling price i.e $ 20 per unit

Question - 2 BUDGETED COST OF MECHANDISE PURCHASSED

Question - 3

For obtaining budgeted cost of goods sold, you have to multiply the budgeted sales ( units) given in the question with cost of each T - shirt = $8

Question - 4

Question - 5 BUGETED INCOME STATEMENT

Quarter -1 Quarter-2 Quarter-3 Budgeted sales revenue 900000 1400000 700000

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